Novartis shares fell 1.9% in Zurich trading on Monday after its experimental drug pelacarsen failed a pivotal Phase 3 cardiovascular trial, erasing roughly CHF4.9 billion in market value. The drug lowered lipoprotein(a) but did not significantly reduce cardiovascular deaths, heart attacks, strokes, or urgent coronary procedures compared with placebo in the Lp(a)HORIZON study, which enrolled 8,323 patients. Novartis, which trades on the NYSE at $159.99, reported second-quarter sales of $14.41 billion and free cash flow of $5.56 billion, but the failure removes a key growth prospect. The stock now sits 22.53% above its GF Value estimate of $130.57, indicating that pipeline optimism remains priced in. Attention now turns to fourth-quarter data for del-desiran, a drug acquired through the $12 billion Avidity deal, which has become a must-win event following this setback.
Novartis AGPelacarsen failed Phase 3 trial, erasing CHF4.9 billion and removing a key growth prospect.
Novo Nordisk A/S